The upshot is a race to reinvent. The starting point for enterprise transformation of this sort often is a reimagination of a company’s place in the world—looking beyond the current portfolio of businesses and products to determine what value an organization will create, and for whom. Such reimagination often involves hard choices about what not to do.
For example, when Philips reinvented itself as a health-technology company, bringing together its Amsterdam-headquartered multinational consumer insights capabilities, depth in medical-device technologies, and strengths in data analytics and artificial intelligence, it also exited some businesses and deemphasized others.
